As We Go from Home Operations to International Operations,we Can

question 48

Multiple Choice

As we go from home operations to international operations,we can potentially receive a ________,but we can also see our ________ increase.

• A)diversification benefit; systematic risk
• B)diversification disadvantage; total risk
• C)diversification disadvantage; systematic risk
• D)diversification benefit; total risk

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Loanable Funds

The funds available within an economy for borrowing, influencing interest rates and capital availability.

Interest Rate

Fees assessed by a lending party on a borrowing party for asset usage, expressed in terms of the principal's percentage.

Rule of 70

A rule that estimates the number of years required to double an investment or population at a fixed annual growth rate, by dividing 70 by the percentage growth rate.